Senate Bill sb0740

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    Florida Senate - 2003        (NP)                       SB 740

    By Senator Saunders





    37-68-03

  1                      A bill to be entitled

  2         An act relating to Collier County; providing

  3         for liens in favor of a nonprofit corporation

  4         operating a charitable hospital within the

  5         county; authorizing such liens on judgments and

  6         settlements recovered from a tortfeasor causing

  7         a patient's injury for reasonable charges owed

  8         to a hospital for services provided to an

  9         injured person; providing limitations;

10         providing for determination by the court of

11         amount of recovery when a patient and hospital

12         cannot agree on the actual amount; providing

13         for reduction of the lien by any payments to

14         the hospital by or on behalf of a patient;

15         providing for notification to the hospital of

16         the patient's intent to claim damages from the

17         tortfeasor; requiring the hospital to state its

18         intent to assert its lien within a prescribed

19         time; providing a waiver of the right for

20         failure to state such intent; requiring that

21         the hospital provide a patient with reasonably

22         necessary information; providing an effective

23         date.

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25  Be It Enacted by the Legislature of the State of Florida:

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27         Section 1.  (1)  Each nonprofit corporation operating a

28  hospital that qualifies as a charitable hospital under section

29  501(c)(3) of the Internal Revenue Code and that is located in

30  Collier County is entitled under this section to a lien, for

31  all reasonable hospital charges due and owing to the hospital

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    Florida Senate - 2003        (NP)                       SB 740
    37-68-03




 1  for medically necessary health care services provided to an

 2  injured person, upon the proceeds of judgments and settlements

 3  recovered from a tortfeasor who caused the injuries to the

 4  injured person thus necessitating the health care services. As

 5  used in this section, the term "patient" includes the legal

 6  representatives of the injured person.

 7         (2)  The lien for all reasonable charges is limited to

 8  the actual amount of all reasonable charges recovered by the

 9  patient from a tortfeasor, less the hospital's pro rata share

10  of costs and attorney's fees incurred by the patient in

11  recovering such charges from the tortfeasor. In determining

12  the hospital's pro rata share of those costs and attorney's

13  fees, the hospital must have deducted from its recovery an

14  amount equal to the percentage of the judgment or settlement

15  which is for costs and attorney's fees.

16         (3)  All reasonable charges must be calculated after

17  reduction for all amounts paid or at any time payable under

18  any third-party-payor contract or agreements between the

19  hospital and third-party payors or from any other private,

20  public, county, state, or federal insurance, contract,

21  agreement, benefit, program, or plan. If benefits are payable

22  under personal injury protection insurance as provided in

23  chapter 627, Florida Statutes, and the injured person has lost

24  wages, 25 percent of the amount of the personal injury

25  protection benefits or the amount of lost wages, whichever is

26  less, must be reserved for paying the injured person's lost

27  wages, and that amount reserved for lost wages may not be used

28  to pay reasonable charges and is not subject to the lien

29  created by this section. All reasonable charges must be

30  calculated after all adjustments, reductions, and write-offs,

31  in accordance with all third-party-payor contracts and

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    Florida Senate - 2003        (NP)                       SB 740
    37-68-03




 1  agreements between the hospital and third-party payors, and in

 2  accordance with any other private, public, county, state, or

 3  federal insurance contract, agreement, benefit, program, or

 4  plan.

 5         (4)  If no amount is paid or at any time payable under

 6  any third-party-payor contract or agreement between the

 7  hospital and third-party payors, or from any other private,

 8  public, county, state, or federal insurance, contract,

 9  agreement, benefit, program, or plan, the amount of reasonable

10  charges must be determined under the third-party-payor

11  contract or agreement entered into between the hospital and a

12  third-party payor which provides for the lowest charges agreed

13  to as acceptable by the hospital, taking into account all

14  reductions and write-offs provided for in the

15  third-party-payor contract or agreement in effect at the time

16  the charges were incurred.

17         (5)  If the patient and hospital fail to agree to the

18  actual amount of the charges recovered from a tortfeasor, the

19  court in which the patient's claim against the tortfeasor was

20  filed, or, if never filed, the circuit court of the county in

21  which the cause of action arose, shall determine the actual

22  amount of the charges recovered from a tortfeasor. In

23  determining the actual amount of charges recovered,

24  consideration must be given to any offset in the amount of

25  settlement or judgment for any comparative negligence of the

26  patient, negligence of other tortfeasors, limitations in the

27  amount of liability insurance coverage available to the

28  tortfeasor, or any other mitigating factors determined

29  equitable and appropriate under the circumstances.

30         (6)  The hospital-lien recovery from the judgment or

31  settlement as calculated under this section must be reduced by

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    Florida Senate - 2003        (NP)                       SB 740
    37-68-03




 1  any payments to the hospital by the patient and by any

 2  payments to the hospital by any other individual or entity

 3  making a voluntary donation on behalf of the patient.

 4         (7)  A patient shall send the hospital, by certified or

 5  registered mail, notification of his or her intent to claim

 6  damages from the tortfeasor. If the claimant has filed suit

 7  against the tortfeasor at the time such notice is sent, a copy

 8  of the complaint against the tortfeasor shall be included with

 9  the notice. The notice must include a statement that the

10  hospital waives any lien if it does not provide the patient or

11  patient's attorney with a statement asserting the lien and the

12  amount of all reasonable charges within 30 days following

13  receipt of the patient's notification to the hospital.

14         (8)  Within 30 days after receipt of the patient's

15  notice of intent to claim damages from the tortfeasor, the

16  hospital must provide the patient or patient's attorney with a

17  statement asserting its lien. Failure of the hospital to

18  provide this statement to the patient or patient's attorney

19  within the 30-day period constitutes a waiver of any lien, and

20  no lien exists if the lien has been waived pursuant to this

21  section.

22         (9)  Payment to the hospital pursuant to this section

23  fully satisfies the patient's hospital charges and bill.

24         (10)  A hospital shall cooperate with the patient and

25  the patient's attorney by producing at no charge to the

26  patient all reasonably necessary information to assist the

27  patient in proving his or her claim against the tortfeasor.

28  Reasonably necessary information includes, but is not limited

29  to, hospital bills and medical records.

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    Florida Senate - 2003        (NP)                       SB 740
    37-68-03




 1         Section 2.  This act shall take effect July 1, 2003,

 2  and applies to all hospital charges incurred on or after that

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